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Union Bank of the Philippines’ fintech UBX has teamed up with the Philippine Postal Corp. (Post Office) to launch Kasama Lahat, a capacity development project will transform the country’s premier postal agency into a modern hub that offers financial and data services for everyone in the community.
Under the partnership, UBX will provide technical knowledge in digital finance and open finance to hasten the Post Office’s digital transformation journey. With its ubiquity and reach, the Post Office will be able to provide its customers with financial services, promote financial and social inclusion, especially in far-flung areas.
Through the Bangko sa Barangay Service of UBX, the Post Office will be able to transform thousands of its outlets nationwide into financial hubs, offering various types of services such as disbursements, fund transfers, cash withdrawals, loan applications, payments, insurance, and collections, among others.
The Philippine Post Office has approximately 1,300 outlets across the country.
“This groundbreaking partnership with the Post Office reflects our strong commitment in including everyone into the country’s financial system. With its reach and data, the Post Office has the power to drive financial and social inclusion through its digital transformation initiative,” John Januzczak, president, UBX, said in a media release.
Aside from transforming each postal outlet as community financial centers, the partnership will also empower postmen to become cash agents. They will be trained to provide guidance on how to apply for financial products and services, as well as to supervise the provision of these services.
In the long term, Kasama Lahat aims to establish Post Office as Open Finance Hubs, which can process data transactions as well, such as validation of customer information for loan applications, asset validation, and even collection or debt restructuring services.
With this partnership, the Post Office will also be able to establish a product line that will establish its financial independence from the budget provisioned by the government, giving the postal agency a more sustainable business culture. The profit margins will also allow it to continue its vision of modernization.
“Our digital transformation journey, powered by UBX, allows us to diversify our services beyond the Filipino people’s postal needs. With our network of over 1,300 outlets and more than 3,500 postmen, we are in a unique position to provide financial services that promote both financial and social inclusion in the country,” Post Office Postmaster General Normal Fulgencio said.